Tuesday, November 26, 2013

Calgary resale home average prices to balloon to more than half a million dollarsReport says average to hit $517,016 in 2017By Mario ToneguzziCalgary Herald November 20, 2013

CALGARY - The average price for a resale home in Calgary will balloon to more
than half a million dollars by 2017, according to a new real estate report
released Tuesday.

The Conference Board of Canada’s Autumn Metropolitan Housing Outlook,
commissioned by Genworth Canada, said the average price for all residential
property in Calgary will grow from $431,760 this year to $517,016 in 2017.

“Calgary is facing a lack of inventory in particular areas,” said Tanya
Eklund, a realtor with RE/MAX Real Estate (Central) in Calgary.

“Buyers looking for land for redevelopment and homes for renovation have been
in very short supply and have driven up pricing due to multiple offers and low
inventory. Low interest rates, strong unemployment rates, low vacancy rates and
an overall strong economy have also added to strength in the Calgary
market.”
Ben Brunnen, an economic consultant in Calgary, said the city’s population
has grown each year for the past four years and this has helped drive
residential construction activity and home prices.

“Net-migration can have a big impact on the housing market, as an influx of
people and families into our city can often increase housing demand
unpredictably,” he said.

“In the current market, vacancy rates are low, rents are high and population
growth is strong. Combined with a good economy and favourable job prospects,
people are more willing to buy than they were a few years ago. The last time
we’ve seen comparable population growth was from 2004 to 2006, when the economy
entered a boom. While we won’t see similar house price appreciations due to
different global economics at play, Calgary house prices should stay strong for
the near future.”

“On the resale housing market front, solid sales will lead to sound price
gains this year and next. The new housing market is benefitting from strong
absorptions, which are trimming unsold stocks of new units and fostering new
construction. The medium term also looks decent.

“Ongoing economic growth will continue to produce gains in resale sales and
prices and keep housing starts above their 20-year average. Good housing
affordability, measured against local incomes, is an ongoing benefit to this
market and allows single-family starts to maintain a high market share compared
with other cities covered in this report.”
The report said summertime flooding in Calgary will limit Calgary’s GDP to
3.3 per cent growth in 2013, modest by recent standards. Output will rise a
slightly faster 3.4 per cent in 2014, spurred by government-funded rebuilding
efforts.

The job market will continue to expand, with annual growth of 2.4 per cent
this year and 2.8 per cent in 2014 cutting the unemployment rate from 4.9 per
cent this year to 4.6 per cent in 2014. Economic health should continue between
2015 and 2017, with GDP expanding roughly three per cent and employment rising
about two per cent each year, it said.

“Calgary’s strong economic fundamentals allowed its resale market to largely
shrug off the floods. Seasonally-adjusted sales and the average resale price
actually rose during June, the flood month, and have subsequently advanced,”
said the report.

“Price growth is accelerating, although increases remain far below boom-era
advances. We expect the market to remain balanced and price growth to stay
healthy in 2014 and over the following few years.”
The report’s forecast for average prices over the next few years and annual
growth rate are: 2013, $431,760, 4.7 per cent; 2014, $451,798, 4.6 per cent;
2015, $473,470, 4.8 per cent; 2016, $497,139, 5.0 per cent; and 2017, $517,016,
4.0 per cent.

Forecast for sales in the resale market for the next few years and annual
growth rate are: 2013, 28,111, 5.5 per cent; 2014, 28,793, 2.4 per cent; 2015,
29,418, 2.2 per cent; 2016, 30,027, 2.1 per cent; and 2017, 30,620, 2.0 per
cent.
“Unsurprisingly, Calgary’s resale prices are rising briskly. Year-over-year
growth has averaged a solid 4.6 per cent in the latest four quarters, including
a first quarter jump near eight per cent,” said the report. “These increases
will lift Calgary’s average price 4.7 per cent in 2013, the largest gain since
2007 and finally exceeding that year’s peak value. Similar price growth is
expected between 2014 and 2016, with a slight tapering in growth to four per
cent in 2017.

“These increases will slightly erode local housing affordability. Principle
and interest charges on Calgary’s average resale home were under 16 per cent of
average household income the last two years and are expected to remain there in
2013. But house prices will rise faster than incomes, pushing the ratio to
roughly 20 per cent by 2017. This remains decent, as affordability is better
only in Edmonton, Ottawa, and Winnipeg among the cities in this report.”

The report said buoyant housing demand is also energizing the new home
market. Absorption of new units averaged 11,200 units in the four quarters to
the second quarter of 2013, up 25 per cent from a year earlier. This included a
surge to an annualized 15,000 units in the second quarter, the most since 2008.
This strength will lift absorptions to a full-year total of 12,140 units in
2013, up 25 per cent from 2012. Another increase of nearly six per cent in
absorptions is expected for 2014, but still trailing the peak of 13,700 units
reached in 2008.

“Healthy new-unit take-up fuelled a big jump in housing starts to 13,186
units in 2012, more than double the recessionary trough in 2009, but well off
peak levels of the last decade,” it said. “We expect starts to ease a modest 2.7
per cent in 2013 as an 11 per cent dip in multiple starts slightly outweighs a
seven per cent gain in single-detached starts. For 2014, rebounding multiple
starts will fuel a five per cent increase in total starts despite relatively
unchanged single-detached construction.

“In the medium term, we expect housing starts to ease slightly, as both
single-family and multiple construction dip. By 2017, we expect 11,400 units to
get under way; this would slightly outpace the 20-year average of housing
starts. While multiple starts are expected to increase their market share, they
are forecast to make up only 52 per cent of total starts between 2013 and
2017.”

Tuesday, November 12, 2013

Despite a recent rise in the number of new listings, resale housing in the
city remains a sellers’ market, says the Calgary Real Estate Board.

“Price growth and tighter market conditions have encouraged some of the
recent rise in new listings,” says chief economist Ann-Marie Lurie of CREB in a
news release.

“This is a trend worth noting as the rise is easing some of the tightness in
the market. Despite some movement, sellers’ market conditions persist.”

New resale listings of all kinds of housing in Calgary totaled 2,522 units
in October, up nine per cent from 2,312 during the same month last year.

New listings have been down in other months this year, meaning the number of
new listings so far this year is on par with the same time last year.

From Jan. 1 to the end of October, there were 29,358 new listings compared
with 29,333 during the same period last year.

In October, there were 1,953 total sales of resale housing of all kinds, up
17.7 per cent from 1,659 sales last year.

Homes also sold faster, spending on average 40 days on market in October
compared with 46 days during the same month in 2012. The average sale price for
homes of all kinds rose last month to $458,876, up five per cent compared with
$437,030 a year earlier.

There were 1,739 new listings of single-family resale homes in Calgary in
October, up 7.6 per cent from 1,615 during the same month last year.

Meanwhile, the pace of sales continued to pick up, selling in an average of
38 days last month compared to 43 days in October 2012.

The average price of single-family homes increased 4.7 per cent to $516,244
in October, up from $492,772 last year.

Sellers are commanding an extra half per cent this month on the final sale
price compared to the same time last month, earning 97.78 per cent of the list
price.

NORTHWEST FLEXES MUSCLES
Of the 1,336 sales of MLS-listed single-family homes in the city, the
northwest quadrant of Calgary was the most popular with homebuyers in October,
says the Calgary Real Estate Board

Tuesday, November 5, 2013

If you are looking to purchase a strata unit in a building that has not yet been built, there are some things regarding the layout of your potential suite you should be aware of.

You want to be aware of backto-back bedrooms and the level of soundproofing in the walls. This is something that is expensive - if not impossible - to change later.

One suggestion for anyone looking for a new condo or townhouse or resale unit: if you can gain access to next door or above or below suites, take a radio with you and play it in the adjoining suite. You may be amazed at how music can transfer through walls.

Also, are the strata rules and regulations in place, or is the strata formed yet? Rules and regulations can limit parking, guest parking, pets, smoking and age of residents. Keep in mind your first purchase may be the biggest capital investment you will make and you do not want it to be negative.

One question I am asked many times at seminars, home shows and in phone calls is: "How do you tell the best from the worst when buying your first piece of real estate?"

I am aware of buyers using the services of home inspectors, but that does not mean they are going to find some of the most important downsides to your potential home.

If you are looking at an apartment, old or new, you may want to monitor the building over a period of 24 hours, or better yet, a week.

For example, how many shift workers live in the building, possible smokers or even rowdies who have no respect for their neighbours? If a condo building is in an area undergoing revitalization, there may be developments under consideration that could take away views that you enjoy.

A number of the points can be important in a new singlefamily homes subdivision, as well. Due to zoning bylaws, homes can be built close to one another. Keep the following items in mind when you are house hunting. Is the property a bare-land strata, at what height can you have a fence or hedge, and are storage sheds allowed? What is the maximum allowable size of sun decks, should you want to enlarge yours? Is there outdoor play equipment such as basketball hoops and trampolines, and is there a goodneighbour policy with regards to noisy heat pumps and air conditioning compressors?

Last, but not least, consider your budget - not just for mortgage payments but yearly costs to operate the home.

You would be surprised how many homebuyers do not properly prepare and end up getting into a costly scenario.

For more home-improvement information or to send Shell an email go to www.askShell. com and become a member of Shell's HouseSmart club.

Monday, November 4, 2013

Calgary’s resale housing market continued to soar in October with strong
year-over-year hikes in both sales and prices.

According to the Calgary Real Estate Board, MLS sales of 1,953 for the month
were up 17.72 per cent from a year ago as the average sale price rose five per
cent to $458,876 while the median price saw an increase of 5.96 per cent to
$409,000.

“The October Calgary real estate market kept a consistent absorption rate
between two to 2.2 months worth of inventory. This places us in a strong
sellers’ market,” said Robyn Moser, a realtor with CIR Realty in the city.

“Attributes of a sellers’ market are, competing offers, listed home selling
in the first two weeks or sooner, sellers being able to dictate the terms of the
negotiations and not having to settle for much less than realistic asking
prices. All consistent with our October experiences.”

Although new listings for the month were up 9.08 per cent to 2,522, active
listings at the end of the month were down 16.19 per cent to 3,841.

The average days on the market to sell a property dropped from 45 a year ago
to 40 in October.
Moser said housing activity in Calgary may be fuelled by a number of factors:
seasonal fall peak activities with people wanting to purchase and move into
homes before winter sets in; investor speculators coming into the market due to
the flood impact in June; corporations reorganizing and centralizing back to
Calgary and Edmonton; and rental rates increasing.

“Buyers had to react to this market by acting quickly when homes came
available for sale, being prepared to pay asking price or above and ensuring
they were prequalified and prepared for condition days of seven days or less in
order to get their offers accepted,” said Moser.

Sales and prices were up across all housing categories in the city during the
month.

In the single-family home market, there were 1,336 MLS sales, up 14.29 per
cent from last year with the average sale price increasing by 4.76 per cent to
$516,244 and the median price rising by 5.12 per cent to $452,000.

The condo apartment category saw sales rise by 24.35 per cent to 337. The
average sale price was up 6.76 per cent to $309,415 and the median price rose by
8.80 per cent to $272,000.

In the condo townhouse market, sales of 280 were up 27.85 per cent with the
average price rising by 13.49 per cent to $365,037 and the median price up by
8.29 per cent to $319,450.

The towns surrounding Calgary saw sales jump by 22.04 per cent to 382 with
the average price increasing by 10.54 per cent to $380,350 and the median price
up 8.11 per cent to $360,000.

“Price growth and tighter market conditions have encouraged some of the
recent rise in new listings,” said Ann-Marie Lurie, chief economist at the real
estate board. “This is a trend worth noting as the rise is easing some of the
tightness in the market. Despite some movement, sellers’ market conditions
persist.”

Employment growth, strong net migration, lack of rental product and low
mortgage rates have contributed to the rise in housing demand over the past two
years, she said.

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SPECIALIZING IN CONTEMPORARY URBAN LIVING...
As a Calgarian for over 30 years and living in the Inner-City, I can relate to the needs of my clients and focus primarily in what I know... Inner-City Homes, Condos and Lofts! Due to the demographics of my specialty, my client base consists mainly of young professionals where time is in short supply. Therefore, after listening to my client's needs, providing precise, accurate information in an expedient manner is of utmost importance.
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